US President Trump announced 100-200% tariffs on generic medicines from Aug 2028 unless manufacturing relocates to the US. This poses a significant challenge for India's $30B pharma industry, which supplies 47% of US generic prescriptions, potentially making exports unviable and raising US drug prices.
India's pharmaceutical sector is hit by rising import costs due to a weaker rupee and declining export demand from a global economic slowdown, squeezing manufacturer profits. Companies are shifting to higher-margin products to cope.
India's pharmaceutical industry faces a potential raw material crunch after the department of fertilizers issued an advisory restricting surplus ammonia sales to the fertiliser sector. The directive mandates urea manufacturing units sell surplus ammonia strictly for fertiliser production, prioritising P&K and NPK manufacturers of subsidised fertilisers. Pharma executives warn the move could disrupt domestic API production, cause medicine shortages and affect India's export commitments, as ammonia is a critical input with limited alternative sourcing options.
